NEST fraud costs members £1.45 million

jamesd

The NEST auto-enrolment scheme members suffered a loss of £1,446,000 due to fraud around the end of last year. The money didn't come from members but will have to be paid for by them. The loss represents £4.82 of loss on average for each of the 300,000 customers of NEST. This was "supplier bank mandate fraud", where the account money is to be paid into is changed to an illegitimate one controlled by the fraudsters. None of the money from the fraudulent payments has been recovered. The mention of "bank" implies that a bank employee may have been involved but no details have been disclosed.

NEST didn't notice the fraud, instead "In January 2013 we were notified that there had been an incident of fraud".

It's unlikely that the money will be taken directly from customer pension pots. It'll just be taken from higher charges, perhaps the current relatively high ones lasting longer, or reduced investment returns.

elantan

Thanks for this James, I phoned the guy that deals with the pensions for our company today and he wasn't aware of it, have now sent an email giving him the link, would love to give him more info on just how bad the nest scheme is as he seems to think its amazing

JoeCrystal

elantan wrote: »

Thanks for this James, I phoned the guy that deals with the pensions for our company today and he wasn't aware of it, have now sent an email giving him the link, would love to give him more info on just how bad the nest scheme is as he seems to think its amazing

Would be nice if jamesd write out simple list why it is so bad!

Cheers,
Joe

dtaylor84

Well, some of the worst aspects of it are apparently going to be removed (including the restrictions on transferring out of it), so it's not as bad as it first seemed. It's still expensive, though.

GhIFA

dtaylor84 wrote: »

Well, some of the worst aspects of it are apparently going to be removed

Although that may not be as clear cut as first announced:

http://www.ftadviser.com/2013/07/17/pensions/personal-pensions/european-commission-could-block-nest-cap-scrap-IAc7gTE7hLscyjzuKE0NyH/article.html

elantan

JoeCrystal wrote: »

Would be nice if jamesd write out simple list why it is so bad!

Cheers,
Joe

I will be honest, I've seen James write out why it is bad, that wouldn't work for my company they need links ( preferably governmental ones) rather than an anonymous individual on a web forum

I can never fault any of the help ( even if it was not the answer I wished for) from anyone on this board that I have received